How Much Does a Business License Cost in Michigan?

Those interested in starting a business in Michigan should be aware that they may need various business or occupational licenses and permits issued by federal, state, or local authorities. The requirements range from general business permits to those related to income and tax information, as well as many industry or occupation-specific requirements. Therefore, you should confirm which licenses apply to your situation based on the nature of your business and location.

General business licenses provide owners the legal right to start and operate a business within a municipality, county, state, or country. Many municipalities and states require every firm to obtain a license to operate within their area of control, including your agreement to manage the business according to the safety, appearance, and other regulatory standards of the community.

Business permits related to an industry or occupation often have education and training requirements, and regulations ensuring that you understand and agree to comply with industry or occupational standards.

Do you need a business license in Michigan?

The State of Michigan is unusual because it does not require general business licenses. However, local entities such as counties and municipalities generally have license or permit requirements. In addition, the federal government, the State of Michigan, and many local governments require licenses or permits for specific industries and occupations.

How much does a business license cost in Michigan?

Business license costs can vary widely depending on your state and industry. In Michigan, there are many types of business licenses that vary by location and level of government entity, such as municipality, county, state, and federal. Below, we provide guidelines for what you can generally expect to pay.

Most local licenses cost $250 or less and can vary based on the business structure, size of the business or square footage, and the nature of the business. For example, a service worker’s home-based business will generally pay different licensing fees than a busy restaurant or factory.

Michigan’s state legislature sets the state occupational license fees, which vary from no cost to nearly $4,750, with most license fees falling below $150. The highest-cost fees are in the medical, architecture, and other professional fields. Michigan’s occupational licenses must be renewed every one to three years, depending on the occupation.

Types of business licenses in Michigan and their cost

Most cities, towns, villages, or other municipal units require business licenses to operate within their borders. Some charge flat fees, others base the fees on the business’s square footage, and still others charge by industry. Most municipal fees are less than $250, though some exceed $1,000 (e.g., retail fireworks in the City of Detroit).

Localities may require licenses or certificates of occupancy for home-based business and commercial spaces to ensure your facilities meet local zoning and safety requirements. To confirm the business licenses you may need, contact your city or township clerk for additional information and requirements.

Michigan’s Department of Licensing and Regulatory Affairs lists industries and occupations for which the state requires licenses or permits. Additional details about specific occupations, their regulating entities, education/training requirements, and fees can be seen in these examples:

Architect	Bureau of Professional Licensing	100
Audiologist	Bureau of Professional Licensing	438
Auto Mechanic	Secretary of State	31
Barber	Bureau of Professional Licensing	247
Boiler Operator	Bureau of Construction Codes	220
Certified Public Accountant	Bureau of Professional Licensing	1034
Medical Doctor	Bureau of Professional Licensing	2857
Milk Hauler	Department of Agriculture and Rural Development	50
Mortgage Broker	Dept of Insurance and Financial Services	1050
Osteopathic Physician	Bureau of Professional Licensing	4162
Teacher	Department of Education	129
Truck Driver	Department of State	50
Taxi/Limousine Driver	LARA Commercial Licensing Division	125

Companies that sell or lease goods to consumers are subject to the 6% state sales tax, which requires a state sales tax license, which is free.

Businesses regulated by federal agencies need a federal license or permit, some examples include:

• Agriculture
• Alcoholic Beverages
• Firearms, Ammunition, and Explosives
• Fish and Wildlife
• Mining and Drilling
• Radio and Television Broadcasting
• Transportation and Logistics

The cost of federal business licenses can vary considerably based on your specific industry, number of business locations, and business volumes. To provide just one example, farms that buy or sell more than one ton of fresh or frozen fruits and vegetables in a single day are subject to the Perishable Agricultural Commodities Act (PACA) license. The current fee is $995 plus $600 per additional location, up to $8,000 per year.

The types of businesses that require a license in Michigan

Among the business categories that require licenses or permits in Michigan are adult and childcare providers, health professionals, occupational professionals (accountants, cosmetologists), skilled trades, and those who sell liquor, though there are many more.

To apply for or renew a license, use the MiPLUS online registration system through Michigan’s Department of Licensing and Regulatory Affairs. Before doing so, you must register for a MiPLUS account. The specifics of each application vary by occupation, but generally require you to provide your educational or training qualifications, information on licensing in other states, your moral character, your need for a controlled substance license, and to pay the license fees using a credit or debit card.

Pro Tip: The Department of Licensing and Regulatory Affairs has step-by-step video guides describing how to apply for a license.

Renewing your business license in Michigan

Michigan requires the renewal of your license every one or three years, depending on the profession. Renewal occurs using the MiPLUS system used to obtain your initial state license. Users log into their accounts to update their information and pay the licensing fees, which range from $50 to $500, with most being on the lower end.

You must renew your license within 60 days of the identified due date, or it becomes null and void. While you are allowed to practice during the 60 days, you may not practice after that until you renew your license. Renewing an expired license may incur late fees, proof of up-to-date education or training, or other requirements.

If you’re still in the early stages of starting an LLC in Michigan, keeping track of these renewal timelines is helpful so you can plan ahead for long-term compliance.

Conclusion

The State of Michigan does not require general business licenses, though some localities require all businesses to be licensed. It is best to contact your city or township clerk to inquire about local licensing requirements. While Michigan does not have general business licenses, you need a sales tax license to sell or lease to consumers. In addition, many industries and professions are subject to licensing by the State of Michigan or at the federal level, so check the resources provided in this article or check on your potential licensing needs with knowledgeable sources in your industry or occupation.

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